HDB Financial Services, a subsidiary of HDFC Bank, has raised Rs 3,369 crore from 141 anchor investors ahead of its highly anticipated Rs 12,500-crore IPO, reported news agency PTI. The company allotted over 4.55 crore equity shares at Rs 740 apiece, the upper end of the price band, to a mix of domestic mutual funds, insurance companies, and prominent foreign institutions.Key investors include LIC, ICICI Prudential MF, SBI MF, Nippon India MF, BlackRock, Morgan Stanley, Allianz Global Investors, Baillie Gifford, Royal Bank of Canada, and Norway’s Government Pension Fund Global. Others like Abu Dhabi Investment Authority, Fidelity Investments, Schroders, Tata Investment Corp, and Societe Generale also participated.Of the total anchor allocation, nearly 1.94 crore shares were allotted to 22 domestic mutual funds via 65 schemes.The Rs 12,500-crore IPO, which opens for public subscription on June 25 and closes on June 27, includes a fresh issue of Rs 2,500 crore and an offer-for-sale (OFS) of Rs 10,000 crore by HDFC Bank, which currently holds a 94.36% stake in the NBFC. Post-listing, the company will continue to remain a subsidiary of HDFC Bank.At the upper price band, HDB Financial Services is valued at approximately Rs 61,400 crore. The shares are proposed to be listed on the BSE and NSE on July 2.According to HDB Financial’s MD & CEO Ramesh G, the company has “built its lending business ground-up” since 2008 and operates independently of the parent bank. “No sourcing is done from the promoter and the technology stack is also different,” he said, as quoted by PTI.The proceeds from the fresh issue will be used to bolster its Tier-I capital base to support future growth and lending needs. The IPO is also in line with the Reserve Bank of India’s October 2022 directive, requiring NBFCs in the ‘upper layer’ category to list within three years.HDB currently manages assets worth over Rs 1 lakh crore and has served more than 17.5 million customers by September 2024. With a diversified product portfolio and a pan-India phygital distribution network of 1,772 branches, the company operates across enterprise, consumer, and asset finance segments.The IPO, managed by 12 book-running lead managers including JM Financial, Goldman Sachs India, HSBC, Nomura, Jefferies India, and Motilal Oswal, is the second-largest in three years after Hyundai’s Rs 27,000-crore issue. Other notable listings expected soon include Tata Capital, LG, PhonePe, and Lenskart.
